- Press Releases
July 16 (Renewables Now) - Portugal's EDP Renovaveis SA (ELI:EDPR) will acquire a 511-MW renewables portfolio in the Iberian peninsula as part of a larger transaction in which its parent company will take control of Spanish power producer and distributor Viesgo.
EDP – Energias de Portugal SA (ELI:EDP), which is the majority owner of EDPR, has agreed to acquire a 75.1% stake in Viesgo from certain funds managed by Macquarie Infrastructure and Real Assets (MIRA). The deal leaves Macquarie Super Core Infrastructure Fund with the remaining 24.9% interest in Viesgo, to which EDP will also contribute electricity distribution network E-Redes.
At the same time, EDPR will acquire Viesgo's renewable energy business, including 24 wind farms and two mini hydropower plants (HPPs) located throughout Spain and Portugal, for an enterprise value of EUR 565 million (USD 644.6m). With seven years of remaining regulated life, the wind parks have the potential for future extensions or repowerings, EDPR said in a statement. This transaction is seen to close by the end of the year.
EDP is meanwhile also acquiring two Viesgo thermal generation plants in the south of Spain. The utility said separately that it will make a net equity investment of around EUR 900 million as part of the overall transaction and will consolidate Viesgos’s existing net financial debt of EUR 1.1 billion. MIRA, on the other hand, will invest some EUR 700 million across debt and equity, according to the announcement.
Following the asset-swap, Viesgo will focus solely on the operation and development of its existing Viesgo Distribution and Begasa networks, as well as that of E-Redes. Together, they represent a network length of 52,177 kilometres (32,421 miles).
(EUR 1 = USD 1.141)